The Bangko Sentral ng Pilipinas (BSP) has renewed its warning to the public against dealing with unauthorized virtual asset service providers (VASPs), citing growing risks tied to fraud, cyberattacks, and potential loss of funds.
Risks of Unlicensed VASPs
In an advisory, the BSP explained that VASPs facilitate activities involving virtual assets or cryptocurrencies, including trading, exchanges, transfers, safekeeping, and payment services. The central bank warned that transacting with unlicensed VASPs exposes consumers to financial and cybersecurity risks, including scams, operational failures, and possible bankruptcy of service providers.
The BSP also noted that users of unauthorized platforms may have limited legal protection and little access to consumer assistance mechanisms in cases involving misleading advertisements, poor service, mishandling of private keys, data privacy issues, and other forms of market misconduct.
Government Enforcement Actions
The regulator added that government enforcement actions against unlawful operators could also restrict Filipinos' access to unregistered platforms. “The BSP shall continue working with the Securities and Exchange Commission, National Telecommunications Commission, and other relevant government agencies, as well as the private sector, in conducting market surveillance to restrict access of Filipinos to unauthorized VASP platforms,” the central bank said.
Consumer Advice
The BSP urged financial consumers to safeguard their personal information, observe proper cyber hygiene practices, and transact only with BSP-authorized institutions. The public may access the official list of BSP-authorized VASPs through the BSP website.
The central bank also advised consumers to review its primers and frequently asked questions on virtual assets and VASPs before engaging in cryptocurrency transactions through the BSP FAQs on virtual assets and BSP FAQs on VASPs.
How to Report Concerns
For complaints involving BSP-authorized VASPs, consumers may contact the BSP Online Buddy through the BSP official website or the central bank’s official Messenger account. Reports involving entities operating without BSP authority may also be sent through the agency’s official email channels.
